The Textile Industry in Egypt
Egypt is home to the only fully vertically integrated textiles industry in the Middle East, with the entire production process from the cultivation of cotton to the production of yarns, fabrics and ready-made garments carried out domestically. The sector plays an extremely central role in the Egyptian economy.
It is the second largest producing sector after agro-industry and the first in terms of jobs accounting for 30% of local employment. It accounts for 3% of the GDP, 30% of industrial output and around 13% of Non- Petroleum exports, according to the Central Bank of Egypt. Of the 25% of the industry focused on textile production, home textiles constitute 12% of the industry, and cotton yarn 8%, while the remaining 5% is attributed to other cotton fabrics and textiles. The majority of spinning (50%), weaving (60%) and hemming (60%) capacity is owned by the public sector while 90% of garmenting capacity is private.
The Egyptian government is actively looking to attract new private investments into the industry’s upstream segments in order to sharpen the nation’s competitive advantage in the global market.